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Consumer decision Process

• What is Consumer Buying Behavior?
• Stages of Consumer Buying Behavior?
• Types of Consumer Buying Behavior.
• Categories That Effect Consumer Buying Behavior.
o Personal
o Psychological
o Social

What is Consumer Buying Behavior?
Definition of Buying Behavior:
Buying Behavior is the decision processes and acts of people involved in buying and
using products.

Need to understand:

• why consumers make the purchases that they make?
• what factors influence consumer purchases?
• the changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A
firm needs to analyze buying behavior for:

• Buyers reactions to a firms marketing strategy has a great impact on the firms
success.
• The marketing concept stresses that a firm should create a Marketing Mix (MM)
that satisfies (gives utility to) customers, therefore need to analyze the what,
where, when and how consumers buy.
• Marketers can better predict how consumers will respond to marketing strategies.

Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a purchase.
All consumer decisions do not always include all 6 stages, determined by the degree of
complexity...discussed next.

The 6 stages are:

1. Problem Recognition(awareness of need)--difference between the desired state
and the actual condition. Deficit in assortment of products. Hunger--Food. Hunger
stimulates your need to eat.
Can be stimulated by the marketer through product information--did not know

This helps reduce cognitive dissonance when a marketer can answer any concerns of a new consumer. want to go out and eat. Evaluation of Alternatives--need to establish criteria for evaluation. . Friends and relatives (word of mouth). This can be reduced by warranties. product availability. Importance and intensity of interest in a product in a particular situation. store. Types of Consumer Buying Behavior Types of consumer buying behavior are determined by: • Level of Involvement in purchase decision. Information search-- o Internal search. 6. Information from different sources may be treated differently. indian gets highest rank etc. Marketers try to influence by "framing" alternatives. After eating an indian meal. 5. you were deficient? I. the evoked set. public sources etc. 4. Marketer dominated sources. comparison shopping. time lapse between 4 & 5. o External search if you need more information. 1-800 #s gives the consumer a way of communicating with the marketer after purchase. package. features the buyer wants or does not want. see a commercial for a new pair of shoes. after sales communication etc. may think that really you wanted a chinese meal instead. If not satisfied with your choice then return to the search phase. evoked set is o chinese food o indian food o burger king o klondike kates etc 3. Can you think of another restaurant? Look in the yellow pages etc. method of purchase etc. have you made the right decision. Purchase decision--Choose buying alternative. Purchase--May differ from decision. memory. A successful information search leaves a buyer with possible alternatives. Hungry.E. May decide that you want to eat something spicy. includes product. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. • Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. 2.. stimulates your recognition that you need a new pair of shoes. Cognitive Dissonance. Rank/weight alternatives or resume search.

Psychological 3. • Impulse buying. Personal 2. Examples include Clothes--know product class but not the brand. high priced goods. Examples include soft drinks. Spend alot of time seeking information and deciding. education. milk etc. snack foods. Information from the companies MM. High degree of economic/performance/psychological risk. need very little search and decision effort. Categories that Effect the Consumer Buying Decision Process A consumer. store personnel etc. Product can shift from one category to the next. Examples include cars. homes. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all). and the higher the risk the higher the involvement. whether it is an anniversary celebration. but limited decision making for someone else. Go through all six stages of the buying process. • Limited Decision Making--buying product occasionally. Requires a moderate amount of time for information gathering. friends and relatives. . making a purchase decision will be affected by the following three factors: 1. The reason for the dinner. The purchase of the same product does not always elicit the same Buying Behavior. products visible to others. When you need to obtain information about unfamiliar brand in a familiar product category. expensive and/or infrequently bought products.High involvement purchases--Honda Motorbike. or a meal with a couple of friends will also determine the extent of the decision making. no conscious planning. Types of risk: • Personal risk • Social risk • Economic risk The four type of consumer buying behavior are: • Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items. • Extensive Decision Making/Complex high involvement. Social The marketer must be aware of these factors in order to develop an appropriate MM for its target market. perhaps. unfamiliar. computers. purchased almost automatically.

Race. a fitness drink. These consumers were at the Physiological level of the hierarchy. Who in the family is responsible for the decision making. Actions are effected by a set of motives. Upon extensive research it was determined that the product did sell well in inner-city convenience stores. Their motivation to purchase was completely different to the motivation that B-MS had originally thought. If marketers can identify motives then they can better develop a marketing mix. Demographic Factors. It was therefore targeted at consumers whose needs were for either love and Belonging or esteem. Young people purchase things for different reasons than older people. Nutrament. Psychological factors Psychological factors include: • Motives-- A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal. Motives often operate at a subconscious level therefore are difficult to measure. The product was not selling well. not just one. • Perception-- . and was almost terminated. a product marketed by Bristol-Myers Squibb originally was targeted at consumers that needed to receive additional energy from their drinks after exercise etc. MASLOW hierarchy of needs!! o Physiological o Safety o Love and Belonging o Esteem o Self Actualization Need to determine what level of the hierarchy the consumers are at to determine what motivates their purchases. They would purchase Nutrament as a substitute for a meal. Age etc. Sex. It was determined that the consumers for the product were actually drug addicts who couldn't not digest a regular meal.. BM-S therefore had to redesign its MM to better meet the needs of this target market.Personal Unique to a particular person. Highlights the differences between male and female shoppers in the supermarket.

Therefore to change consumers' behavior about your product.free sample etc. and certainly will not retain many. need to give them new information re: product.. Knowledge is the familiarity with the product and expertise. Advertisers that use comparative advertisements (pitching one product against another). satisfies current needs. have to be very careful that consumers do not distort the facts and perceive that the advertisement was for the competitor. changes in a person's behavior caused by information and experience. on knowledge that is stored in the memory. Learning. Problems marketing wine from South Africa.. forgets those that don't. intensity of input changes (sharp price drop).open bottle of wine and pour it!! Also educate american consumers about changes in SA. Inexperience buyers often use prices as an indicator of quality more than those who have knowledge of a product. IE we chose what info we pay attention to. When making buying decisions. organizing and interpreting information inputs to produce meaning. Selective Distortion-Changing/twisting current received information. buyers must process information. • Ability and Knowledge-- Need to understand individuals capacity to learn. hearing. organize it and interpret it.. Need to sell a whole new country. Can't be expected to be aware of all these inputs. smell and touch. inconsistent with beliefs. Information inputs are the sensations received through sight.. and hence its products. A current example.500 advertisement per day... South Africa.MCI and AT&T.000 products in a shopping visit lasting 30 minutes-60% of purchases are unplanned. .. Average supermarket shopper is exposed to 17. Consumers have strong perceptions of the country. What do you see?? Perception is the process of selecting. Selective Exposure-select inputs to be exposed to our awareness. taste. More likely if it is linked to an event.do you ever get confused? Selective Retention-Remember inputs that support beliefs.. Interpreting information is based on what is already familiar. Exposed to 1.

. Lexus. Hondas market returning to hard core. To change this they have a new slogan "Come ride with us". Examples include: o Workaholism o Compulsiveness o Self confidence . IE brand loyalty. Consumer attitudes toward a firm and its products greatly influence the success or failure of the firm's marketing strategy. Honda "You meet the nicest people on a Honda". Attitudes and attitude change are influenced by consumers personality and lifestyle.Drive perceptions Individual learns attitudes through experience and interaction with other people. There is a difference between attitude and intention to buy (ability to buy). Oldsmobile vs.000 credit cards were returned or cut-up after the tragic oil spill. living or non. baby boomers aging. due to consumers attitudes toward Oldsmobile (as discovered by class exercise) need to disassociate Aurora from the Oldsmobile name. Learning is the process through which a relatively permanent change in behavior results from the consequences of past behavior. because they assume that the greater price indicates greater quality. Exxon Valdez-nearly 20. Consumers screen information that conflicts with their attitudes. • Attitudes-- Knowledge and positive and negative feelings about an object or activity-maybe tangible or intangible.. uniqueness arrives from a person's heredity and personal experience. Distort information to make it consistent and selectively retain information that reinforces our attitudes.living.. Non-alcoholic Beer example: consumers chose the most expensive six-pack.. Changing market of the 1990s. late 1950s. dispel the unsavory image of a motorbike rider. • Personality-- all the internal traits and behaviors that make a person unique.

.) Can be risky.. learning..Chevy Chase .edu the results. Marketers try to attract opinion leaders. McDonalds.they actually use (pay) spokespeople to market their products. Nike ads. natural lifestyle. Michael Jordon (Nike.Michael Jackson. person's family.OJ Simpson. Consumers buy products that are consistent with their self concept. Traits effect the way people behave. Lifestyles are the consistent patterns people follow in their lives. This is a survey tool that marketers can use to better understand their target market(s). • Opinion leaders-- Spokespeople etc. this may be due to unreliable measures. There is a weak association between personality and Buying Behavior. to access Value and Lifestyles (VALS) Program. are influenced by opinion leaders. EXAMPLE healthy foods for a healthy lifestyle. social class and culture. motives etc... Now an assault by the American Academy of Dermatology. Marketers try to match the store image to the perceived image of their customers... complete the survey and Email alex@udel. o Friendliness o Adaptability o Ambitiousness o Dogmatism o Authoritarianism o Introversion o Extroversion o Aggressiveness o Competitiveness.. • Lifestyles-- Recent US trends in lifestyles are a shift towards personal independence and individualism and a preference for a healthy. Gatorade etc. Extra credit assignment from the news group. reference groups. Return to Contents List Social Factors Consumer wants. Sun tan not considered fashionable in US until 1920's.

. in labor force o solitary survivor. retired o Modernized life cycle includes divorced and no children.also. no children.. Handout. youngest child 6 or over o full nest III.things you should do based on the expectations of you from your position within a group. . People have many roles. the decision maker within the family unit is changing. (Children influence about $130 billion of goods in a year) Children also have more money to spend themselves.. young. older married couples with dependant children o empty nest I..me o full nest I. youngest child under 6 o full nest II. head in labor force o empty nest II. attitudes or behaviors of the group members... father. Family is the most basic group a person belongs to. older married couples with no children living with them.Two Income Marriages Are Now the Norm Because 2 income families are becoming more common.most of BUAD301 o newly married. • Reference Groups-- Individual identifies with the group to the extent that he takes on many of the values. employer/ee... each stage creates different consumer demands: o bachelor stage.. older married couples. family has less time for children.. head retired o solitary survivor. The Family life cycle: families go through stages. and therefore tends to let them influence purchase decisions in order to alleviate some of the guilt.• Roles and Family Influences-- Role. Husband. no children living at home. Individuals role are continuing to change therefore marketers must continue to update information. Marketers must understand: o that many family decisions are made by the family unit o consumer behavior starts in the family unit o family roles and preferences are the model for children's future family (can reject/alter/etc) o family buying decisions are a mixture of family interactions and individual decision making o family acts an interpreter of social and cultural values for the individual.

• Social Class-- an open group of individuals who have similar social rank. occupation. not on welfare o Lower-lower class. from current professionals and corporate elite o Upper-middle class. Families. 9%. Family. inherited wealth. US criteria. 7%. quality. IE upper middle class Americans prefer luxury cars Mercedes. aristocratic names. Membership groups (belong to) Affinity marketing is focused on the desires of consumers that belong to reference groups. do not engage in much prepurchase information gathering. ethnic groups and possessions. US is not a classless society. wealth. Stores project definite class images. newer social elite. 32%.!! Aspiration groups (want to belong to) Disassociate groups (do not want to belong to) Honda. managers and professionals o Middle Americans-middle class. o Lower-upper class. average pay blue collar workers o Lower Americans-lower class. tries to disassociate from the "biker" group. 12.5%. . Lower class people tend to stay close to home when shopping. o Upper Americans-upper-upper class. the types. 38%. friends. Credit Cards etc. 1. sororities. civic and professional organizations. working. The degree to which a reference group will affect a purchase decision depends on an individuals susceptibility to reference group influence and the strength of his/her involvement with the group. average pay white collar workers and blue collar friends o Working class. reference groups and social classes are all social influences on consumer behavior. . Social class influences many aspects of our lives. All operate within a larger culture. education.2%. race. Marketers get the groups to approve the product and communicate that approval to its members. college graduates. Any group that has a positive or negative influence on a persons attitude and behavior. income. on welfare Social class determines to some extent. quantity of products that a person buys or uses.3%.

Big impact on international marketing... different levels of needs. eat.Tea is a part of the British culture. .. Cultural values in the US are good health. education. • Culture and Sub-culture-- Culture refers to the set of values. reside and travel. individualism and freedom.. IE change in meals.Will British warm up to iced tea? No. ideas. In american culture time scarcity is a growing problem. and attitudes that are accepted by a homogenous group of people and transmitted to the next generation. IE West Coast. different cultural values. teenage and Asian American.but that is my opinion!!. Handout. Culture can be divided into subcultures: o geographic regions o human characteristics such as age and ethnic background. Culture effects what people buy. Culture also determines what is acceptable with product advertising. hot with milk. Culture determines what people wear. Understanding Consumer Buying Behavior offers consumers greater satisfaction (Utility).. We must assume that the company has adopted the Marketing Concept and are consumer oriented.. how they buy and when they buy. Different society.